Talking Points

Reported by PLANADVISER Staff

A Record COLA Adjustment

Social Security and Supplemental Security Income beneficiaries will get an 8.7% cost of living increase to their benefits in 2023, the greatest given in 40 years. These changes affect approximately 70 million Americans. On average, Social Security benefits will be over $140 more per month. This jump follows the 5.9% increase beneficiaries saw this year.

Source: Social Security Administration

Maximum Benefit/Plan Contribution Limits

2023 vs. 2013 Contribution Limits

2023
2013
Elective deferrals – 401(k), 403(b)
$22,500
$17,500
Annual contribution limit
$66,000
$51,000
Annual compensation limit
$330,000
$255,000
Highly compensated threshold
$150,000
$115,000
Top-heavy plan – key-employee comp
$215,000
$165,000
Catch-up contributions
$7,500
$5,500
Source: Internal Revenue Service

What Financial Professionals Say About Crypto

With cryptocurrency values dropping from 2021 highs, about half (47%) of investment professionals globally, and 59% of those in North America, are telling clients to avoid digital investments.

“Client demand for crypto is increasing”
“Crypto offers diversification benefits”
“Having crypto exposure is inappropriate”
Asia
57%
55%
46%
Europe
52%
50%
51%
Latin America
59%
55%
42%
North America
36%
30%
51%
United Kingdom
21%
13%
63%
Source: 2022 Natixis Global Survey of Financial Professionals

Where DCIO Managers Focus Attention

Data reflect results of Cerulli’s Q3 survey of 35 asset managers, including the largest by DC investment only assets at year-end 2021.

Retirement income accumulation
26%
Collective investment trusts
18%
Environmental, social and governance
15%
Personalization
12%
Advice initiatives and relationships
12%
Target-date funds
6%
Inflation-hedging
6%
Equity/Fixed-income product development/distribution
6%
Source: Cerullli, “U.S. Defined Contribution Distribution 2022”